Politicians Rethink Killer 1099 Legislation

A few months ago, a key piece of legislation was uncovered in the 1000 + page health care bill. It states that businesses have to give 1099 tax forms to vendors for services and goods worth $600 or more. People are UP IN ARMS about this hidden measure. It will pay for a nice little chunk of health reform, $19 billion over 10 years. No wonder it was sandwiched in the middle, where it took months for people to find.

Business people have raised enough hell for legislatures to take a second (or first) look at the measure. They’re taking two positions on it. Get rid of it all together, or modify it. The modification raises the $600 reporting mark to $5000. Businesses with less than 25 employees would be exempt. And all credit card transactions would be exempt too.

The Senate will hold a vote on the amendment on September 14th. 

For more detailed information on the amendment, take a look at the New York Times article by Robb Mandelbaum.